CNN reports Lucas Papademos was slated to take the oath of office in Greece on Friday morning after a tumultuous week that saw George Papandreou resign midway through his four-year term as prime minister. Formerly a vice president of the European Central Bank, Papademos will have to craft a national unity government in preparation for dealing with damages wrought by the sovereign debt crisis.
"It is still unclear whether a new government in Italy will be able to successfully consolidate its budget without external help. Gold should therefore continue to profit from the persisting high uncertainty," states a note from Commerzbank, according to Reuters.
At 8:23 a.m. on Friday, gold futures climbed 0.8 percent, a $14.10 increase to $1,773.70 per troy ounce.
Investors are likely to return to gold as a safe haven for wealth in light of administration changes in another nation victimized by the sovereign debt crisis. Italy also is looking to a new prime minister following the resignation of Silvio Berlusconi after 17 years in office. Though no one has been tapped, Bloomberg reports former European Union competition chief Mario Monti is the front-runner.
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